Month: August 2020

Sebi relaxes default recognition norms for COVID-19 related debt restructuring

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Markets regulator Sebi on Monday asked credit rating agencies not to consider as default the restructuring of debt done solely due to COVID-19 related stress by lenders.

The move comes after the Reserve Bank of India (RBI) provided a loan restructuring window for corporates following bankers’ and industry’s demand.

As per RBI, restructuring will be allowed as per the prudential framework issued on June 7, 2019.

“Based on its assessment, if the credit rating agency (CRA )is of the view that the restructuring by the lenders/ investors is solely due to COVID-19 related stress or under the… RBI framework, CRAs may not consider the same as a default event and/or recognize default,” Sebi said in a circular.

It further said appropriate disclosures in this regard will be made in a press release.

The Securities and Exchange Board of India (Sebi) said such relaxation is extended till December 31, 2020.

In March, Sebi had asked CRAs not to consider as default any delay in payment of interest or principal loan amount arisen solely due to the nationwide lockdown.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

L&T completes divestment of electrical, automation business to Schneider Electric

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Engineering and construction giant Larsen and Toubro on Monday said it has completed the strategic divestment of its electrical and automation business to Schneider Electric.

The move will see India becoming the third largest country in terms of revenues for Schneider Electric. With this, about 5,000 employees of Larsen and Toubro’s electrical and automation business will be integrated with Schneider Electric’s over 2,000 employees.

Though the size of the deal was not disclosed, L&T had inked a definitive pact with Schneider Electric in 2018 to sell its electrical and automation business for an all-cash consideration of Rs 14,000 crore, as part of its long-term strategy to exit non-core activities.

“Larsen and Toubro (L&T), India’s leading engineering, technology, construction and financial services conglomerate, today announced the closure of the strategic divestment of its electrical and automation (E&A) business to Schneider Electric, a global player in energy management and automation,” the company said in a statement.

The significant and complex divestment deal, one of its kind in India announced in May 2018, has been completed after receiving the requisite regulatory approvals and fulfilment of necessary conditions, it said.

The divestment is in line with L&T’s stated goal of unlocking value for future growth.

L&T continuously evaluates its business portfolio and takes capital allocation decisions from a long-term perspective, the company said and added that its exit from the E&A Business is a part of the strategic portfolio review process.

Commenting on the closure of this divestment, L&T group chairman A M Naik said: “The closure of divestment of the E&A business is a key milestone in our stated long-term strategy. The challenge was to carve out a business of this scale, with minimum disruption to the sprawling customer base and do it all amid the constraints of a pandemic.”

Naik said the company believed Schneider Electric is the right partner to grow the business, that L&T had nurtured and grown over decades.

“We truly believe that this deal with Schneider Electric is a win-win for our employees, business partners and shareholders,” he said.
Schneider Electric in a separate release said the combined business after completion of this acquisition will come under Schneider Electric India Pvt Ltd (SEIPL), in which is 65 per cent stake is owned by French multinational Schneider Electric, while 35 per cent stake is held by global investment company Temasek.

Schneider Electric also announced the appointment of Anil Chaudhry, the current Zone President and Managing Director of Schneider Electric India, as the CEO SEIPL and Zone President India.

Jean-Pascal Tricoire, chairman and CEO, Schneider Electric, said, “The coming together of Schneider Electric and L&T’s electrical and automation business combines two great teams, highly professional and specialised in the space of energy management and automation, and passionate about technology, innovation, quality, safety, sustainability and social responsibility.”

This newly merged company will serve the priorities of India: Make in India for India and the rest of the world, Digital India, Skill India, Sustainable Energy, Smart Cities and Infrastructure for self-reliance, to bring tremendous value to customers and stakeholders, employees, partners, suppliers, and community in which the company develops, Tricoire said.

“We are also proud to partner with Temasek, who bring along their deep knowledge of India, and their coaching to help develop the export of the company. This major strategic move will make India, Schneider Electric’s third largest business in the world, and one of the four major global Schneider hubs for global R&D, global manufacturing,” he said.

The company will also “keep growing already significant export from our Indian factories”, he said and added “Anil Chaudhry will lead the new entity as its CEO and bring his deep expertise in digitisation and electrification as well as his passion for the cause of digital solutions for efficiency and sustainability”.

S N Subrahmanyan, CEO and MD, Larsen and Toubro said: “This all cash deal will help us create a much stronger balance sheet, thereby creating long-term value opportunities for our stakeholders by focusing on key aspects of business.”

The deal was a complex M&A transaction involving slump sale of the domestic business and share purchase transfer, he said adding this is in sync with our strategy to look at L&T in broadly three areas, EPC construction and projects, manufacturing and defence and services.

L&T’s E&A business with its wide range of low and medium voltage switchgear, electrical systems, industrial and building automation solutions, energy management systems, metering solutions and projects and services business are transferred to Schneider Electric.

Schneider Electric will use related brand insignia for a specified period as the brand is very popular and has a strong brand recall in the switchgear market.

The manufacturing facilities of E&A in Navi Mumbai, Ahmednagar, Vadodara, Coimbatore and Mysuru in India and related subsidiaries in UAE, Kuwait, Malaysia and Indonesia are also being transferred to Schneider Electric.

In view of the pending local approvals, the subsidiary in Saudi Arabia, L&T Electrical & Automation Saudi Arabia Company Limited (LTEASA), will be transferred to Schneider, once the requisite regulatory approvals are in place, the company said.

L&T, over the past five years, in line with its strategy to focus on the EPC and services business, has exited several businesses. The recent divestment of its stake in ports, insurance, road concessions and other businesses have all unlocked value and this deal with Schneider Electric will further strengthen the balance sheet, the company said.

Shardul Amarchand Mangaldas (SAM) Legal Advisors, Ernst & Young (EY) LLP and Arpwood Capital acted as advisors to L&T on this transaction.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Here’s a comparison of fixed deposit interest rates offered by NBFCs across maturities

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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With falling rates of bank fixed deposits (FDs), investors can consider parking money in corporate FDs to generate some extra money. Several non-banking financial companies (NBFCs) offer the option of opening FDs and interest rates on the fixed deposits of these companies are higher than that of commercial bank FDs.

The highest FD card rate offered by some companies are over 200-300 basis points (bps) more than the highest FD card rates offered by most PSUs and large private sector banks. However, these deposits are considered relatively riskier.

In case of corporate FDs, the returns depend on the profits posted by the companies, say experts.

Hence, investors should are asked to go for companies that have a higher credit rating of A-AAA and have an operationally efficient business model.

Here’s a comparison of interest rates offered by some of the NBFCs on fixed deposits:

Bajaj Finserv

Bajaj Finserv offers the following FD interest rates on deposits below Rs 5 crore:

PNB Housing Finance

PNB Housing Finance offers the following FD interest rates on deposits below Rs 5 crore:

Mahindra Finance

Mahindra Finance offers the following FD interest rates on non-cumulative deposits between Rs 1 crore to Rs 5 crore:

Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

CBDT Chairman Pramod Chandra Mody’s term extended by 6 months

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The government has extended the tenure of Central Board of Direct Taxes (CBDT) Chairman Pramod Chandra Mody for a period of six months, effective from September 1. He was due to retire on August 31.

The Cabinet Committee has approved the extension of the CBDT Chairman’s term and now he will hold the position until February 28 next year.

The notification says, “The Appointments Committee of the Cabinet has approved extension in the re-appointment of Pramod Chandra Mody as Chairman, Central Board of Direct Taxes (CBDT) for a period of six months with effect from 01.09.2020 to 28.02.2021 or until further orders, whichever earlier.”

In February, he took over the reins from Sushil Chandra, who went to become Election Commissioner. He is a 1982-batch Indian Revenue Service Officer.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

STARTUP DIGEST: Here’re top startup stories of the day

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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There were many development in the startup space during the day, which include Eruditus raises $113 million, HomeLane raises Rs 60 crore, IRDAI to permit video-based KYC system for insurance companies, Paytm Mall refutes allegations of data breach, says ‘all user data is safe’, and Niyogin Fintech acquires 51% strategic stake in iServeU. Here are today’s updates:

#1 STARTUP FUNDING OF THE DAY

Eruditus raises $113 million from Chan Zuckerberg fund, others; valuation doubles
Online learning startup Eruditus raised $113 million in a funding round led by the Chan Zuckerberg Initiative (CZI), Prosus Ventures ( Naspers), and Leeds Illuminate Global Fund, doubling its valuation to $800 million in two years.

Its existing investor Sequoia Capital participated in the round as well. Notably, Sequoia, CZI and Naspers are all investors in Byju’s, India’s largest online learning startup.

Founded in 2010, by Chaitanya Kalipatnapu and Ashwin Damera, Eruditus offers management programmes and short courses remotely. Its subject areas include leadership and management, data science, digital transformation, banking and finance.

HomeLane raises Rs 60 crore funding from Stride Ventures, existing investors
Home interiors company HomeLane has raised Rs 60 crore ($8+ million) in a bridge funding round from Stride Ventures and existing investors. With this round, HomeLane’s total fund-raising has crossed Rs 370 crore ($54 million) in the last six years.

Stride Ventures led this round, participating through debt funding of Rs 20 crore in the company. Existing investors Accel Partners, Sequoia Capital, Evolvence India and JSW Ventures also participated, infusing another Rs 40 crore in equity.

Part of the funds will also be deployed to enhance HomeLane’s technology offering to give consumers a better interior service experience by focusing on its proprietary 3D design platform, Spacecraft.

YC-backed Bikayi raises seed round of $2 mn from a clutch of international investors
YCombinator-backed Bikayi raised a seed round of $2 million from a clutch of international investors including Mantis ventures, a VC fund promoted by the popular band Chainsmokers.

Mantis is a $50 million VC fund to invest in startups and this is their first investment in an Indian entity. Other investors include YC, Pioneer Fund, and Angel Investor Ankur Nagpal to name a few. Funds will be used to hire more talent to accelerate product development, ramp up the platform and on-board a million new merchants.

Bikayi is a B2B e-commerce enabler that essentially helps small businesses build an online presence and gives them the right tools to manage e-commerce on WhatsApp.

TrulyMadly 2.0 raises Rs 8.1 crore in a Pre-series A funding round

Dating app TrulyMadly 2.0 raised a Pre-series A funding round of INR 8.1 Crore via Angelist, Inflection Point Ventures and The Chennai Angels. Entrepreneurs and CXOs from startups like Unacademy, Haptik, Innov8, AirBnB, among others invested in this round. TrulyMadly’s existing investors also participated in this round.

The startup will use the funds to scale up its team size and operations and also enhance its technology.

The Healthy Company raises $3.5 lakh from VCATS, FirstCheque, 9Unicorns & others
Gurugram-based Superfoods & AI Health Venture, The Healthy Company, raised its first institutional round of investment of $350,000, from Venture Catalysts, Kushal Bhagia as part of First Cheque, 9Unicorns, Beardo founders.

Backed and accelerated by Gurgaon based Huddle, the AI health venuture will use these funds to get users to lose weight and better manage their lifestyle conditions like diabetes, thyroid, PCOD etc.

#2. IRDAI to permit video-based KYC system for insurance companies

After the banking regulator, now the Insurance Regulatory Development Authority of India (IRDAI) is set to open the gates for video-based verification of customers looking to buy insurance products.

The IRDAI said in a letter to insurance companies that they may use video-based identification process to simplify the Know-Your-Customer (KYC) requirements, according to Moneycontrol.

This comes a few months after the Reserve Bank of India (RBI), through a notification, gave the nod for video KYC to simplify bank account opening.

#3. Paytm Mall refutes allegations of data breach, says ‘all user data is safe’

Hours after US-based cyber research firm Cyble said that a hacker group ‘John Wick’ was able to gain unrestricted access to Paytm Mall’s databases, the company refuted claims of a data breach. Paytm Mall on August 30 said it has not found any security lapses yet after investigating claims of a possible hack and data breach.

“We would like to assure that all user, as well as company data, is completely safe and secure… We have been investigating the claims of a possible hack and data breach, and haven’t found any security lapses yet,” a Paytm Mall spokesperson said in a statement.

#4. Niyogin Fintech acquires 51% strategic stake in iServeU
BSE listed, fintech company Niyogin, has acquired a 51% strategic and controlling stake in Financial inclusion solution provider iServeU for Rs 592 million ($8 M) in a cash plus stock deal.

The acquisition not only provides Niyogin with deep market access to under banked India, but also offers multiple product complementarities such as credit, digital wealth, and payments among others which the two companies can jointly access to create a strong full-stack fintech value proposition for its customers, believes Amit Rajpal, Chairman and Co-Founder, Niyogin Fintech.

#5. GPay has no access to Aadhaar database: Google to Delhi HC
Google India Digital Services on Monday told the Delhi High Court that it has no access to the Aadhaar database and does not require any such information for operating its Google Pay (GPay) mobile app.

The submission was made in an additional affidavit placed before a bench of Chief Justice D N Patel and Justice Prateek Jalan by Google in response to an allegation, in an ongoing public interest litigation, that the National Payment Corporation of India (NPCI) granted GPay access to the BHIM Aadhaar platform without knowledge of the Unique Identification Authority of India (UIDAI).

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bill Gates bakes a special cake, writes a heart-warming blog on Warren Buffett’s 90th birthday

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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“A person that I admire as well as like,” wrote Microsoft Founder Bill Gates in his blog for his well-known investor friend Warren Buffett on the occasion of his 90th birthday. Gates also baked a special Oreo cake for his friend, with Buffett’s face on it and shared the video clip.

Describing Buffett, Gates wrote in the blog, “Warren has the mental sharpness of a 30-year-old, the mischievous laugh of a 10-year-old, and the diet of a 6-year-old.”

In the video clip, Gates baked an Oreo cake and shot the entire process saying, “Here’s a short birthday video in honor of his dietary preferences”. He even made Buffett’s face on the cake, with a message “Happy 90th Birthday Warren.”

It wasn’t just the cake that Gates baked, he wrote a blog describing their decades old friendship. He recalled that it has been exactly 10,649 days since the day the two first met in 1991 and established a deep friendship.

Speaking about Warren and his spectacular career, Gates said, “Warren has a phenomenal eye for talent. He buys great businesses run by brilliant people, and then gives them the autonomy to make their own decisions. Most of the managers at Berkshire businesses stay for decades, often past the retirement age. Even if they make a few mistakes, they know Warren will stick with them.”

Recalling one incident from Warren’s life, Gates said that he bought the biggest furniture retailer of America (Furniture Mart) in 1983 because he admired the business acumen of Rose Blumkin who started the business in Nebraska. After Warren’s acquisition of the company, Blumkin soon opened a rival furniture company across the street, and sold that to Warren again.

Gates in his blog also wrote that he learnt about the value of friendship from Warren. Few years back when they spoke to some college students, Warren explained, “You will move in the direction of the people that you associate with. So it’s important to associate with people that are better than yourself. The friends you have will form you as you go through life. Make some good friends, keep them for the rest of your life, but have them be people that you admire as well as like.”

While ending his blog, Gates said, “A person that I admire as well as like—that’s the perfect description of how I feel about Warren. Happy birthday, my friend.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Lost your Aadhaar card? Here’s how you can retrieve it online

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Aadhaar number, a 12-digit unique identification number, serves as unique identity proof for various purposes. Seeing the utility of Aadhaar card, one should be very careful while keeping it.

However, in case subscribers lose or misplace it, they can easily get a duplicate Aadhaar card from the official website of Unique Identification Authority of India (UIDAI). The duplicate card has the same card number and other details as the original card.

In order to apply for the duplicate Aadhaar card, users need to provide the enrollment number mentioned in the acknowledgement slip provided at the time of enrolling for the Aadhaar card.

Also read: How you can apply for a duplicate PAN card online?

In case, the user does not have the acknowledgement slip, he/she can find it from the UIDAI website.

Here are the steps to get duplicate Aadhaar card online, according to Paisabazaar:

Step 1: Visit the official UIDAI website — resident.uidai.gov.in/lost-uideid

Step 2: Choose either “Aadhaar No (UID)” or “Enrolment No (EID)”

Step 3: Put basic information like name, email address and mobile number registered with UID

Step 4: Type the security code as displayed

Step 5: Now, click on the “Get OTP” button. An OTP will be sent to the user’s registered mobile number/e-mail address.

Step 6: Input the OTP received on the mobile number

Step 7: Click on “Verify OTP” button

Step 8: A message containing the Aadhaar or Enrolment number will be registered on the mobile

Step 9: Now, visit the website at resident.uidai.gov.in/lost-uideid

Step 10: Select Aadhaar Number (UID) or Enrolment ID (EID)

Step 11: Input Aadhaar number or Enrolment ID, full name, pin code, security text as shown in the tab and mobile number.

Step 12: An OTP will be sent to the registered mobile number.

Step 13: Input the OTP received on mobile in the “Enter OTP” tab and click on “Validate and Generate”

Step 14: The Aadhaar will be generated as a PDF file

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow